Search

Table 2.5 Business activities restricted for foreign investment under the Foreign Business Act
List 1 - Businesses not permitted for foreigners to operate due to special reasons
Maximum foreign equity participation of 50% for foreigners and foreign companies
4. Forestry and wood fabrication from natural forests
(...)
List 2 - Businesses related to national safety or security or affecting arts and culture, tradition, folk handicraft or natural resources and environment
Maximum foreign equity participation of 60% (and up to 75% on a case-by-case basis). At least two-fifths of the board of directors must be Thai nationals. Approval required from the Cabinet and permits granted by the Minister of Commerce
(...)
List 3 - Businesses in which Thai nationals are not yet ready to compete with foreigners
No foreign equity limits. Approval required from the Foreign Business Committee and permits granted by the Director-General of the Department of Business Development
3. Forestry from reforestation
(...)

(...) Products that are absolutely prohibited include counterfeit goods, baraku/shisha and electronic baraku/shisha or electronic cigarette, CFC refrigerators, electrically and mechanically operated game machines, certain glazed ceramics wares, goods duplicating registered products, re-treaded or used pneumatic tyres of rubber for cars, motorcycles and bicycles and waste, paring and scrap of rubber of cars, buses/trucks, motorcycles and bicycles, used car bodies and motorcycle frames, used motor vehicles for the transport of 30 or more persons, and, used motorcycle engines and accessories (Table 3.2). (...)

Table 3.2 Products subject to import licensing and prohibition, 2015
Commodity HS code Rationale Measures and condition
CFC refrigerators Public health and environmental protection Import prohibited
(...)
Re-treaded or used pneumatic tyres of rubber for cars, motorcycles and bicycles, and waste, parings and scrap of rubber of cars, buses/trucks, motorcycles and bicycles 4012.11.00, 4012.20.10, 4012.19.10, 4012.20.40, 4012.19.20, 4012.20.50, 4004.00.00 Public health and environmental protection Import prohibited
(...)
Used motor vehicles 8703.21, 8703.229, 8703.239, 8703.249, 8703.319, 8703.329, 8703.339 Public health and environmental protection Absolutely prohibited
(...)

To prevent illegal logging, imports of logs and sawn wood made of teak trees or forbidden trees from the border of Tak and Kanchanaburi provinces remain prohibited. Bans (based on UN Resolutions) on imports of diamonds, logs, and wooden products from Liberia were lifted in 2007, and on diamonds from Sierra Leone in 2007 and 2003. Thailand accepts the Kimberly Certification Process. For SPS and TBT measures affecting imports see section 3.2.6.

Table 3.2 Products subject to import licensing and prohibition, 2015
Commodity HS code Rationale Measures and condition
(...)
Logs and sawn woods which are made of teak trees, or forbidden trees from the border of Tak and Kanchanaburi provinces 44.03, 44.07 To prevent the illegal logging along the border between Thailand and Myanmar and conserve natural resources Import prohibited
(...)

Of Thailand's total area of just over 51 million hectares, 31% (16.3 million hectares) comprised forest in 2013 (down from over 50% in the 1960s). The vast majority of the total forested area is natural forest, owned by the State; commercial logging has been banned in all natural forests since 1989 in an attempt to curb rapid deforestation. The State also owns 74,560 hectares of protected plantation forest, with a view to rejuvenating forestry within the country. Licences may be granted by the Royal Forest Department on a case-by-case basis to the Forest Industry Organization to undertake logging in these areas. The commercial forested area, owned by the private sector, occupied 320,000 hectares in 2012.

In general, export prohibitions and export quotas continue to be imposed to comply with Thailand's international obligations for environmental, public health and intellectual property reasons, or to comply with bilateral agreement provisions (Table 3.4). (...)

Table 3.4 Products subject to export licensing, registration requirements or prohibitions, 2015
Commodity HS Rationale Measures and condition
Non-agriculture products
(...)
- Natural sand 2505.10.00, 2525.90.00 Conserve exhaustible national resources Export prohibited
(...)

(...) Imports of all endangered species, including fish, molluscs, amphibians, and corals etc., under Appendix I of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) are authorized only in exceptional circumstances.

Table 3.2 Products subject to import licensing and prohibition, 2015
(...)
Re-treaded or used pneumatic tyres of rubber for buses or trucks 4012.12.10, 4012.12.90, 4012.20.21, 4012.20.29 Public health and environmental protection Import licensing
(...)
Used motor vehicles for the transport of 30 or more persons (see below) 8702.90 Public health and environmental protection Non-automatic licensing: import not generally allowed, except as prototype for assembly or production
(...)
Yellowfin tuna 0302.32 Environmental protection Import certificate required from the Department of Fishery